Over 400 organizations call on President Donald Trump to safeguard the Medicaid program. They voice concerns over potential funding cuts as Trump prioritizes government spending reductions.
While Trump has assured no Medicare and Social Security reductions, healthcare leaders and analysts fear the Trump administration will target Medicaid for savings. On his first day in office, Families USA and over 425 healthcare organizations, unions, and advocacy groups sent a letter urging the president to protect the program, which serves 80 million Americans.
“Medicaid provides insurance for 38 million children and covers more than 40% of all births in the U.S.,” the letter states. “It is the lifeline that allows mothers to deliver safely and children to have a healthy start in life. Medicaid is also critical to keeping rural hospitals open and meeting the healthcare needs of their communities.”
The groups, which include the American Public Health Association, March of Dimes, and the National Alliance on Mental Illness, emphasize the importance of Medicaid funding, particularly for hospitals still recovering from the financial strain of the COVID-19 pandemic. They warn that any move toward block grants, work requirements, or structural changes to Medicaid could harm health systems, states, and vulnerable communities.
“If instituted, Americans will lose access to lifesaving services, states will face massive budget deficits, hospitals will be forced to cut staff and services, and families will be unable to afford essential care,” the groups argue. They add that cuts would hurt productivity and the economy overall.
A report by Moody’s Ratings also highlights the severe impact Medicaid cuts would have on hospitals, particularly in states that expanded Medicaid under the Affordable Care Act. Reductions in Medicaid or state-directed payment funding could disproportionately affect rural and safety-net hospitals.
Lisa Kidder Hrobsky of the American Hospital Association says the organization is preparing to lobby Congress and the Trump administration to maintain Medicaid’s current structure and funding. “We’re ensuring we have the best data to tell the story of Medicaid and its critical role for patients and providers,” she said.
While Trump has yet to propose specific cuts, he has created the Department of Government Efficiency, led by Elon Musk, to identify areas for spending reductions. Former CMS Director Seema Verma noted at the HLTH Conference that the administration may prioritize ensuring Medicaid funds are spent effectively and grant states more control over the program.
As the debate unfolds, healthcare leaders stress that Medicaid is not just a safety net but a cornerstone of America’s healthcare system, serving millions of families, children, and hospitals.